LandInvestors.com Forums **Ask A Question** Do you record anything at the county when selling with owner financing?

  • Creator
    Topic
  • #18773

    Joe
    Participant
    Post count: 19

    I am selling a property in Pennsylvania with owner financing and it seems like it would be beneficial to me as the seller to not record anything at the county until the property is paid in full. That way if they stop paying I don’t have to go through forclosure. Just curious to see how others are handling their financing sales.

Viewing 6 replies - 1 through 6 (of 6 total)
  • Author
    Replies
  • Kevin Farrell
    Moderator
    Post count: 966
    ProAdvanced

    Joe – I do not record anything with the county when doing terms deals. Most others here will agree. Some states require the contract to be recorded. I would avoid doing land contracts in states like that.

    Try using ZimpleMoney to help you service your contract. This may be all that you need. Or shop around. There are other companies out there that will probably help you without the requirement to record the contract with the county. The only one I can think of is evergreen but there are others.

    I have less than 5% of sales in land contracts so I am not a real expert. I hope that someone with many terms deals can reply and advise you on this.

    Joe
    Participant
    Post count: 19

    Thanks for the reply Kevin! Do you mean avoid seller financing all together in states that require the contract to be recorded?

    I’ve looked into zimplemoney and geekpay as well. Seems easy enough. I was a bit worried about servicing the loan myself but it seems like the only thing I have to worry about is sending out 1098s each year and late notices if need be.

    Kevin Farrell
    Moderator
    Post count: 966
    ProAdvanced

    Joe – I charge zero interest on my terms deals so no 1098 required for either party.

    Paul
    Participant
    Post count: 3
    Pro

    If you charge 0%, then is there no incentive for the buyer to refinance or pay the loan off early? I just figured that charging an interest rate instead of 0% you would open up the possibility to pay off early. Although it seems that any buyer asking to owner finance on a property seldom understands an amortization table or the time value of money.

    Kevin Farrell
    Moderator
    Post count: 966
    ProAdvanced

    Paul – You are exactly correct. I write in a couple of early payoff points. But I would actually prefer they just pay it out till the balance is zero. And your last comment about people who ask for owner finance not understanding amortization is almost always 100% true.

    Steven Kish
    Participant
    Post count: 113
    Pro

    I also do 0% interest loans to keep it simple for reporting, but I work the numbers accordingly and offer a 10% early payoff to the remaining balance due for a full payoff of the note at any time (no early pay penalty of course).

Viewing 6 replies - 1 through 6 (of 6 total)

You must be logged in to reply to this topic.